Army changes wartime purchasing due to fraud

The panel recommended creation of the contracting command to not only ensure tax dollars are spent wisely, but to transform a workforce held in low regard.

Firm evidence of the problems in Army contracting was found in the lack of general officers in contract management slots. In the 1990s, there were five Army generals in key contracting positions. By the time the war in Iraq began there were none, which meant the contracting ranks lacked clout and few opportunities for career advancement.

The number of contracting personnel also was dropping, according to the commission. At the same time, the Army was spending more money on gear and services, from about $23 billion to more than $100 billion in 2006.

In addition to forming the contracting command, the Army has made other moves to curb waste, fraud and abuse. Service officials recently transferred oversight for nearly $4 billion in Iraq war contracts from the procurement office in Kuwait to an Army organization in Illinois.

The Army also assigned a pair of teams to pore over hundreds of contracts issued by the Kuwait office since 2003. The goal of the teams was to ensure these contracts were free of fraud and had been awarded properly. One team in Kuwait inspected 339 contracts each under $25,000 in value; another team in Warren, Mich., checked over 313 contracts each worth more than $25,000.

Both found problems during their reviews and alerted the Army Audit Agency and the Criminal Investigation Command, according to an information paper prepared by Army Materiel Command. The paper did not say how many contracts had flaws, nor did it say exactly what the problems were.

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